In competitive markets, it’s common to see CMOs investing heavily in attracting new leads to meet their conversion goals. However, they end up leaving aside a crucial part of their audience: existing customers.
Yes, constantly acquiring new customers is essential in any Digital Marketing strategy , but the loyalty of those who are already customers is the formula for achieving sustainable growth in any business.
So how about exploring more possibilities in this regard?
In this article we will discuss what a perfect customer loyalty program should look like:
- What is customer loyalty?
- Are customer satisfaction and loyalty the same thing?
- What are the benefits of having loyal customers?
- How to implement customer loyalty program?
- 5 examples to inspire you to increase customer loyalty towards your company
Keep reading!
What is customer loyalty?
The concept of customer loyalty itself shop holds no secrets. First of all, it is an indicator of the likelihood that a customer will repeat the experience after their first purchase.
But the term also refers to the method itself. It conveys the strategies, tools and actions that help people become repeat customers , whether by purchasing products or using a service on an ongoing basis.
A loyal customer is a company asset and a personification of the ideal customer .
Finding more of these people and getting to know them better are key steps to achieving recurring and constantly growing sales .
Are customer satisfaction and loyalty the same thing?
So to begin we must clarify a confusion thales luiz that generally occurs between the terms satisfaction and loyalty, many times they are understood as synonyms when in reality they are not.
Satisfaction
It is a specific feeling related to an canada cell numbers expectation with a product or service. A satisfied customer is one who finds what they are looking for and manages to solve their problem regardless of the link they generate with your company or brand.
Loyalty
It is more than a one-time feeling, it is a positive perception that goes beyond a purchase or the resolution of a problem. Loyalty is the indicator that for that customer, your company or brand is associated with an experience and a philosophy of life.
As you can see, there is a big and subtle difference between satisfaction and loyalty. Let’s say that satisfaction is the previous step to loyalty, while the first is directly linked to the acquisition and use of a product, the second is more associated with the relationship between the company and the client .
What are the benefits of having loyal customers?
It’s hard not to see loyalty as a good thing in any scenario. After all, it’s all about getting customers to buy more and better from you, but it’s crucial to understand what a good loyalty program means in practice.
This means knowing the various benefits that a Digital Marketing plan brings to the profitability of your business.
Below we will see a list of the main ones!
Sell more to converted customers
There is one vital indicator for online businesses, especially virtual stores, that is directly related to customer loyalty. We are talking about Lifetime Value (LTV) .
This metric shows you the average time a person is a customer and how much they spend during that period.
Improving this KPI can maximize the return on each new customer. We know how hard it is to get them, so why not take full advantage of this after converting a lead into a customer ?
Reduce costs in marketing
As a marketer, you are aware of the costs involved in attracting new leads from the start. This work includes helping them learn about your brand, getting their attention, making them consider options, and convincing them to buy.
Customer Acquisition Cost (CAC) is always higher when the buying journey is longer. That’s why you should focus on those who are closer to making a new purchase.
Therefore, having a balance between generating leads and nurturing converted customers is the best strategy for a lower CAC.
